Landlords and tenants of commercial properties can find themselves in a dispute if the tenant does not give the property back at the end of the lease in the same condition that it was let to them at the start of the lease. This is called dilapidations.
The starting point in any dispute over the condition of the property is the review the terms of the lease to understand the tenant’s obligations, i.e. what is the tenant responsible for? Other additional documents will also need to be considered, for example, if there are any licences to alter.
Once a landlord understands exactly what the tenant is responsible for, and what they have failed to do, the landlord can consider bringing a claim against the tenant for damages.
How do landlord’s assess the damages?
Generally, the damages would be for the breach of the repairing covenant and damages for breach of any other covenant. Damages are assessed by looking at the proper and reasonable costs to put the property into repair, plus any other consequential losses, such as loss of rent. This will be assessed by experts.
When a landlord has an idea of what needs to be repaired, they can then consider what experts they need. Some cases may require more than one expert, in different areas. Most cases can be assessed by a general building surveyor, but there might be some situations where a specialist surveyor needs to be instructed, for example, if there is asbestos or subsidence. The landlord may also require a lettings expert to assess loss of rent.
Can a landlord issue proceedings straight away?
There is a strict protocol a landlord must follow before issuing proceedings. This includes sending a schedule of dilapidations and a quantified demand. The tenant can then respond. The landlord must then send their quantification of losses, any stocktakes, attempt negotiations, and then if the matter is still not resolved, issue court proceedings.
Most dilapidation cases settle without the need for court proceedings. This is because most tenants are on the backfoot if there is a clear breach or some disrepair.
If, however, you do find yourself in a dispute which has not settled, our dispute resolution team can assist.
To discuss this or any other related matter, please contact the dispute resolution team on 01483 887766, start a live chat or email us at info@hartbrown.co.uk.
*This is not legal advice; it is intended to provide information of general interest about current legal issues.
